In a Competitive Market with Free Entry and Exit, If

question 219

Multiple Choice

In a competitive market with free entry and exit, if all firms have the same cost structure, then

• A)all firms will operate at their efficient scale in the short run.
• B)all firms will operate at their efficient scale in the long run.
• C)the price of the product will differ across firms.
• D)Both a and b are correct.

---

Definitions:

Psychotherapy

A treatment method for mental health conditions involving talking with a mental health professional to explore thoughts, feelings, and behaviors to achieve desired change.

Hostile Attitude

Exhibiting aggression or animosity towards others or towards specific ideas.

DSM-IV-TR

The fourth edition, text revision, of the Diagnostic and Statistical Manual of Mental Disorders, a guide used by clinicians to diagnose mental disorders.

Psychological Disorder

A pattern of behavioral or psychological symptoms that impact multiple areas of life and create distress for the person affected.